Social and Behavioral Sciences Commons^™

Labor Standards And South Korean Employment Practices In North Korea, Marcus Noland

Marcus Noland

By 2012, South Korean firms employed more than 50,000 workers in North Korea. This paper examines whether their employment practices are likely to encourage North Korea’s transition. Survey data indicate that the North Korean government has successfully circumscribed exposure of North Korean citizens both to South Koreans, and to more market-oriented economic practices. South Korean investment in North Korea may well be beneficial for both the firms and workers involved, but evidence of the sort of broader spillovers that proponents of engagement sometimes assert is not evident. The possibility of using voluntary labor codes to promote transformation is then examined.